Crypto Sectors Performance [Daveatt]

10 thg 12, 2024

IMPORTANT
⚠️ This script must be used on the Daily timeframe only.

OVERVIEW
This indicator brings the powerful sector analysis capabilities from velo.xyz/market's
Sector Performance chart to TradingView.
It enables traders to track and compare performance across the crypto market's major sectors, providing essential insights for sector rotation strategies and market analysis.

CALCULATION METHOD
The indicator calculates performance across six key crypto sectors: DeFi, Gaming, Layer 1s, Layer 2s, AI, and Memecoins.
For each sector, it computes a rolling percentage performance by averaging the performance of multiple representative tokens.
All sector performances are rebased to 0% at the start of each period, making relative comparisons clear and intuitive.

VISUALIZATION MODES
The script features two distinct visualization methods:

Plots Mode:
Displays continuous performance lines for each sector over time, ideal for tracking relative strength trends and sector momentum. Each sector has its own color-coded line with performance values clearly marked.



Bars Mode:
Presents current sector performance as vertical bars, offering an immediate visual comparison of sector gains and losses.
The bars are color-coded and labeled with exact percentage values for precise analysis.

For the "Bars Mode", I used the box.new() function



SECTOR COMPOSITION
Each sector comprises carefully selected representative tokens:
- DeFi: AAVE, 1INCH, JUP, MKR, UNI
- Gaming: GALA, AXS, RONIN, SAND
- Layer 1: BTC, ETH, AVAX, APT, SOL, BNB, SUI
- Layer 2: ARB, OP, ZK, POL, STRK, MNT
- AI: FET, NEAR, RENDER, TAO
- Memecoins: PEPE, BONK, SHIB, DOGE, WIFU, POPCAT

PERFORMANCE TRACKING
The indicator implements a rolling window approach for performance calculations.
Starting from 0% at the beginning of each period, it tracks relative performance with positive values indicating outperformance and negative values showing underperformance.
Multiple timeframe options (1W, 1M, 3M, 6M, and 1Y) allow for both short-term and long-term analysis.

APPLICATIONS
This tool proves invaluable for:
- Sector rotation analysis
- Identifying trending sectors
- Comparing relative strength
- Gauging market sentiment
- Understanding market structure through sector performance

Thanks for reading and for the support
Daveatt

10 thg 12, 2024

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